Tulum Energy: $27M Raise & Forgotten Hydrogen Tech
tulum Energy Revives “Forgotten Mistake” to Produce Low-Cost, Clean Hydrogen
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For decades, a serendipitous discovery at a Techint Group steel plant lay dormant. Now,Tulum Energy is poised to disrupt the hydrogen market by resurrecting this “almost forgotten mistake” – a novel method of methane pyrolysis that promises to deliver hydrogen at a competitive price without carbon dioxide emissions.The company recently closed a $27 million seed round, signaling strong investor confidence in its potential.
From Accidental Discovery to Viable Business
The story begins with an unexpected outcome during steel production. As Massimiliano Pieri, CEO of Tulum Energy, explained to TechCrunch, an experiment with an electric arc furnace yielded a surprising result. The process unintentionally broke down methane into its constituent parts: hydrogen and solid carbon. However, the discovery was largely overlooked for the next 20 years.
Fast forward to a couple of years ago, when Techint group’s corporate venture capital arm, TechEnergy Ventures, began actively seeking innovative solutions for clean hydrogen production. Their search didn’t have to extend far. “someone in the company realized, ‘But we already have that. We have this discovery,'” Pieri recounted.
This realization sparked the creation of Tulum Energy, spun out from the conglomerate to commercialize the accidental breakthrough. The recently secured $27 million seed round, led by TDK Ventures and CDP Venture Capital, with participation from Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures, will fuel the company’s next phase of development.
Methane Pyrolysis: A Cleaner Hydrogen Pathway
Tulum isn’t alone in exploring methane pyrolysis as a route to hydrogen production. Companies like Modern Hydrogen, molten Industries, and Monolith are also vying for a share of this emerging market. The appeal lies in the process’s ability to leverage abundant and affordable natural gas while eliminating carbon dioxide emissions – a significant advantage over customary hydrogen production methods.
Methane pyrolysis works by breaking down methane in the absence of oxygen, resulting in hydrogen gas and solid carbon. Both products have commercial value,enhancing the economic viability of the process.
However, Tulum distinguishes itself through key technological advantages. Unlike some competitors, Tulum’s process doesn’t require expensive catalysts to initiate the pyrolysis reaction. Moreover, the company utilizes a modified electric arc furnace, a well-established and widely available technology, providing a significant head start in scaling production.
“This gives you a big head start,” Pieri emphasized.
Pilot Plant and Commercialization Strategy
Tulum will deploy the seed funding to construct a pilot plant in Mexico, strategically located adjacent to an existing Techint Group steel plant. This proximity offers a potential captive customer, with the steel plant poised to purchase both hydrogen and carbon directly from Tulum for its operations.
The company envisions a commercial-scale plant capable of producing two tons of hydrogen and 600 tons of carbon daily. This scale is crucial for achieving cost competitiveness.
Tulum projects a hydrogen production cost of approximately $1.50 per kilogram in the U.S., assuming favorable electricity and natural gas prices. This price point is remarkably competitive - just 50 cents more than conventional hydrogen produced from natural gas and significantly lower than many green hydrogen production methods. Importantly, this cost estimate doesn’t factor in revenue from the sale of the solid carbon byproduct.
This innovative approach,born from an “almost forgotten mistake,” positions Tulum Energy as a promising contender in the rapidly evolving clean hydrogen landscape.[Image of Tulum Energy’s pilot plant.[ImageofTulumEnergy’spilotplant
[ImageofTulumEnergy’spilotplantImage Credits: Tulum Energy]